Deposit deductions at the end of a tenancy: evidence, fair wear and tear and disputes

A deposit belongs to the tenant until the landlord proves otherwise. That single rule, applied by every scheme adjudicator in England, decides most deposit disputes: the landlord or agent has to show, on the balance of probabilities, that the tenant broke a term of the agreement, that it caused a loss, and what that loss reasonably cost, after allowing for fair wear and tear.

This guide explains what can and cannot be deducted, how fair wear and tear and betterment are applied, the evidence that wins and loses cases, and the timetable the schemes work to. Checked against gov.uk and the DPS, MyDeposits and TDS websites on 31 October 2026.

What a deposit can be used for

A deposit covers losses caused by the tenant failing to meet their obligations under the tenancy agreement and the general law. The schemes group claims into cleaning, damage, redecoration, gardening, rent arrears and other, and an adjudicator asks the same questions for each item:

1. What is this part of the claim for?
2. What were the tenant's obligations under the agreement and the law?
3. Did the tenant fail to meet them? The check-in and check-out reports and the rent statement answer this.
4. What loss did that cause, allowing for fair wear and tear?
5. What evidence quantifies the loss? Invoices, quotes or estimates.

A landlord does not need to have paid for the work before claiming: an estimate or quote is acceptable evidence of cost. The adjudicator will still reduce a claim that looks excessive for the work involved.

Fair wear and tear

Fair wear and tear is the deterioration that comes from the tenant's reasonable use of the property and the ordinary operation of natural forces. The DPS cites the House of Lords definition: "reasonable use of the premises by the tenant and the ordinary operation of natural forces". A landlord cannot charge the tenant for it; only deterioration beyond that, caused by negligence or misuse, is damage.

Adjudicators weigh:

• the length of the tenancy: the longer the tenancy, the more wear is expected, and redecoration claims after five or more years rarely succeed
• the number and age of occupiers: a family with children produces more wear than a single occupant
• the quality and age of the item at check-in: a budget carpet that was already five years old has little life left to lose
• condition at the start against condition at the end: which is why the check-in report matters more than any other document

Fair wear and tear applies to condition. It does not excuse a dirty property: cleaning is judged on whether the property was returned to the standard of cleanliness recorded at check-in.

Betterment and apportionment

A landlord cannot claim new for old. The adjudicator's aim is to put the landlord back in the position they would have been in had the tenant complied with the agreement, and no better. Replacing a worn item with a new one, or redecorating to a higher standard than at the start, is betterment and will not be awarded in full.

Instead the cost is apportioned. The standard approach takes the replacement cost, the age of the item, its expected lifespan and the lifespan it had left at check-out, and awards the tenant's share of the remaining value. TDS's worked example is a carpet that cost £403 new, was five years old but in good condition at check-in, and should have lasted ten years: after a twelve-month tenancy the award reflects the life the carpet had left, and never the price of a new one. Showing the apportionment in your claim, rather than leaving the adjudicator to work it out, improves the chance of the figure being accepted.

The evidence that decides a case

The adjudicator works from the documents alone. They do not visit the property, do not speak to either party and will not ask for anything that is missing. Evidence that is undated, cannot be tied to the property, or is illegible is given no weight. Photographs should be labelled with the date, the room and what they show, and numbered so the claim can refer to them.

What loses cases: no check-in report, or an unsigned one; end-of-tenancy photos with nothing to compare them with; a round-number claim with no quote behind it; and claims for items that were already worn at the start.

A scheme adjudicator can only decide how the deposit is split. They cannot award more than the deposit, hear a tenant's counterclaim, or allow a tenant to set off rent against repairs; those go to court.

How the dispute process runs

The process is similar at all three schemes, and the legal framework is on gov.uk: the service is free, both parties must agree to use it, both are asked for evidence, and the decision is final.

1. Check-out against the check-in report, as soon as the tenant leaves.
2. Propose deductions in writing, promptly, with the reason and amount for each. Where a cost is not yet known, say so and follow up with the quote.
3. The tenant responds, accepting or disputing each item. Silence is not agreement: TDS's rules say an agent must not treat a tenant's failure to respond as acceptance, and a tenant who has asked for their deposit and not received it within 10 days can raise a dispute.
4. Pay the agreed amount. The law requires the deposit to be returned within 10 days of agreement on how much is repaid, and only the disputed amount is held back. Where the deposit is insured, the disputed amount must be lodged with the scheme; MyDeposits requires it within 10 working days of the dispute being raised.
5. Evidence windows. The DPS gives each party 14 calendar days from its evidence request. MyDeposits gives the landlord 20 working days on its insured scheme and 5 working days for final evidence on custodial.
6. Decision. MyDeposits says the adjudicator generally has up to 28 days; the DPS says a decision normally takes up to 15 business days from the adjudicator receiving all the evidence. The scheme then pays out as directed.

Time limits apply to raising a dispute. On MyDeposits' insured scheme it is three calendar months less a day from the tenant leaving. Check your own scheme's rules and act early.

Since 1 May 2026 tenancies are periodic and end on two months' notice from the tenant, so check-outs are spread through the year rather than bunched at fixed-term end dates. Where a tenant has kept a pet with consent, pet damage beyond fair wear and tear is claimed in the usual way; see pet requests under the Renters' Rights Act. The protection rules are unchanged: see tenancy deposit protection rules and how the deposit schemes work.

A check-out checklist for agencies

1. Book the check-out for the day the tenant hands back keys, using the same inventory format as check-in.
2. Photograph every room and every item you intend to claim for, labelled and dated.
3. Within days, send the tenant an itemised list of proposed deductions with reasons and costs or expected costs.
4. Apply fair wear and tear and apportion replacement costs before you send the figure, not after the tenant objects.
5. Pay the undisputed balance within 10 days of agreement.
6. Refer anything still disputed to the scheme with the evidence table above, and nothing more.

How Letfold helps

Letfold keeps the signed tenancy agreement, check-in and check-out reports, photographs and quotes on the tenancy record, so the documents an adjudicator will ask for are in one place when the tenancy ends. The rent schedule and payment history give the arrears figure without a separate spreadsheet, and messages with the tenant stay on the record as evidence of what was proposed and when. See tenancies and documents.

Frequently asked questions

What can a landlord deduct from a tenancy deposit?

Losses caused by the tenant breaking the tenancy agreement: unpaid rent, damage beyond fair wear and tear, cleaning to return the property to its check-in standard, missing items, and gardening or redecoration where the agreement required it.

What counts as fair wear and tear?

Deterioration from the tenant's reasonable use of the property and the ordinary operation of natural forces, judged against the length of the tenancy, the number and age of occupants, and the age and quality of the item. It cannot be charged to the tenant.

Who has to prove a deposit deduction?

The landlord or agent. Adjudicators start from the position that the deposit is the tenant's money and decide on the balance of probabilities whether the landlord has shown an entitlement to each amount claimed.

Can a landlord claim the full cost of a new carpet?

Not usually. Claiming new for old is betterment. The cost is apportioned according to the carpet's age, expected lifespan and remaining life at check-out.

How long does a deposit dispute take?

Evidence windows run from 5 to 20 working days depending on the scheme and route, and the adjudicator then has up to 28 days at MyDeposits or around 15 business days at the DPS. Expect four to eight weeks from raising the dispute to payment.

Sources

Checked on 31 October 2026:

• Tenancy deposit protection: disputes and problems (gov.uk)
• How to present your case to a TDS adjudicator (Tenancy Deposit Scheme)
• Tenancy deposit disputes explained: process and evidence (mydeposits)
• The dispute resolution process, In disputes, be fair and Adjudication (Deposit Protection Service)

This article is general information for England, not legal advice.